Project description
Factors impacting price inflation
Despite a common monetary policy, Euro Area economies face an idiosyncratic degree of uncertainty. This stems both from country-specific developments and from shocks experienced by major partners such as the United Kingdom and the United States. The EU-funded UNMACRODYN project aims to study the macroeconomic dynamics in response to uncertainty shocks. It will explore how price inflation is affected by a country’s monetary policy. Two papers will be published, focusing on the American economy as the benchmark case and the Euro Area’s major economies. Research outcomes will serve as a reference for policymakers in carrying out monetary policy and managing the macroeconomic effects of uncertainty shocks.
Objective
This research project studies the macroeconomic dynamics in response to uncertainty shocks. The focus is on dynamics of price inflation and how it might change according to the stance of the monetary policy. The project aims i) to fill a gap in the macroeconomic literature, by delivering a conclusive interpretation of uncertainty shocks as either inflationary or deflationary, and ii) to provide a reference for policy-makers in conducting the monetary policy and managing the macroeconomic effects of uncertainty shocks. The research question is preeminent for the case of the Euro Area, where despite a common monetary policy, economies face an idiosyncratic degree of uncertainty, that is affected by both country-specific developments and shocks hitting the major partners, like the US and the UK. The research question will be investigated in two distinct papers, namely Paper A and Paper B, that aim to be published in international peer-reviewed top-field journals. Paper A will provide a theoretical analysis, i.e. DSGE model-based analysis, about the inflation effects to uncertainty shocks under different specifications of the monetary policy. Paper B will consider different time-series models to focus the data-implied response of inflation to uncertainty shocks under different degrees of monetary policy smoothing. For both papers, I will consider the data of the U.S. economy -as the benchmark case- and of the major economies in the Euro Area. The comparison with the U.S. case will be instructive on how the combination of heterogenous uncertainty and common monetary policy affects the dynamics of Euro Area country-specific inflation.
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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H2020-EU.1.3. - EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions
MAIN PROGRAMME
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H2020-EU.1.3.2. - Nurturing excellence by means of cross-border and cross-sector mobility
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
MSCA-IF-EF-ST - Standard EF
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) H2020-MSCA-IF-2018
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
E1 4NS LONDON
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.